With prices of brent crude crossing the $100 barrel mark, airlines have started to hike fares to bear costs.
Low-cost carrier SpiceJet said it was reviewing the situation on a daily basis, while Kingfisher said it had hiked the fuel surcharge.
"We have started with an increase of a couple of hundred rupees per ticket but to be very honest this is only the beginning. It is getting really uncomfortable," said SpiceJet CEO Neil Mills at a conference organised by Confederation of Indian Industry (CII).
"Pricing (of tickets) is dynamic. It's changing everyday, it is not absolute or same across the board. At current levels of crude, airfares must be hiked by Rs 600-700 to break even," he said.
"Kingfisher Airlines has sufficiently raised fuel surcharge to meet rising crude expenses," its chairman Vijay Mallya said.
"We have not raised the fares but we have adjusted the fuel surcharge. We are forced to pass it on to the passengers as increasing fuel prices has squeezed our margins," said Sudheer Raghavan, chief commercial officer of Jet Airways.
Addressing the conference, Nasim Zaidi, secretary, ministry of civil aviation said said the ministry would take up the issue of recent hike in service tax with the finance ministry.